Assessment of the Groundnut Crop Processing Value Chain in North Kordofan State, Sudan

Abstract

This study aimed at analyzing the value chain of groundnut edible oil in North Kordofan State. The specific objectives of the study include identifying different actors in the value chain and assess their roles, determine the costs and profit of different activities at each stage in the chain and calculate the marketing margin of the of the different actors in groundnut value chain . The data for this study were collected from both primary and secondary sources. The primary data were collected using structured questionnaire, which was carried out in Um Rawaba and Elrahad localities in November 2015. The sample was selected purposively of 60 farmers from 2 localities, 30 traders from 3 markets and 7 manufacturing business men (processors) from 3 localities; Um Rawaba, Elrahad and Shaikan. Secondary data included reviewing the literature and available secondary data from various sources; Bank of Sudan, Ministry of Agriculture and Elobeid crops market. The data was analyzed by means of descriptive statistical technique and budget analysis using Statistical Package of the Social Sciences (SPSS) software. The results of groundnut value chain analysis revealed that the main actors in the chain were farmers, raw groundnut traders, peeler owner, peeled groundnut traders, processors, oil wholesalers, oil retailers, consumers. Farmers added 17.67% to total value of the marketing margin and the shares of other actors were 11.82%, 5.37%, 12.47%, 20.61%, 1.83%, and 30.23% for traders, owner peeler, peeled trader, processors, oil wholesaler, and oil retailer, respectively. The results also showed that the oil retailer and processors have the highest two shares of total gross margin which were 38.18% and 26.20%, respectively. Oil retailers are the dominant value chain actors, since their share reached 71% of total gross profit margin. The study recommended provision of the modern inputs of production to farmers, improving post-harvest activities through provision of good transport and storage facilities, linking the farmers directly with industries will shorten the chain and increase the producer’s share, reducing fees and taxes and protecting the local processors from cheap and low quality imported oil.